Trammell Crow JV Lands $70M for Central Valley Asset
Barings provided the financing.
The joint venture of Trammell Crow Co. and CBRE Investment Management has obtained a $70.2 million loan to refinance Tracy 205 Logistics Center, a recently delivered industrial building in Tracy, Calif., in San Joaquin County. Barings provided the note in a deal arranged by CBRE.
Previous debt included a $65.4 million construction loan issued by Western Alliance Bank in 2021, according to CommercialEdge information. That note matured in December 2024.
The partners completed Tracy 205 just about two years ago at 1269 E. Grant Line Road. Its location in the Northern Central Valley submarket provides quick access to interstates 5, 205, 580 and Highway 99.
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The Class A, cross-dock facility is about 606,000 square feet and features a 40-foot clear height, a 4,000 amp electrical service, ESFR sprinklers, a 185-foot truck court and a fully fenced yard. The building also includes 4,054 square feet of office space.
A CBRE San Francisco Debt & Structured Finance team led by Executive Vice Presidents Michael Walker and Brad Zampa advised the borrower on the financing.
Slow at the moment
The Central Valley’s San Joaquin County industrial market experienced a substantial slowdown in 2024, according to a fourth-quarter report from Colliers. The net absorption of 2.6 million square feet was the lowest year-end total in nine years, while project starts were at the lowest level since 2012.
Overall vacancy in the Tracy/Mountain House submarket rose to 7.3 percent, which is welcome for occupiers seeking almost any size space, up to 600,000 square feet.
Although at least five warehouse/distribution spaces came on the submarket during the fourth quarter, ranging from 40,760 to 372,195 square feet (the latter a sublease), no new speculative space broke ground during the quarter or is currently underway in the submarket, Colliers reported.
This past October, Conor Commercial Real Estate and Dayton Street Partners, in partnership with an affiliate of Heitman, completed a three-building, 1.1 million-square-foot speculative industrial campus in Stockton, Calif. The developers had announced the 56-acre infill development in October 2021.
In December, a joint venture of Trammell Crow Co. and Realty Income Corp. broke ground on a build-to-suit industrial facility for The Home Depot also in Stockton. The $100 million project is scheduled for completion next year.
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